BILL NUMBER: SB 1329	CHAPTERED  07/21/00

	CHAPTER   163
	FILED WITH SECRETARY OF STATE   JULY 21, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	PASSED THE SENATE   MAY 25, 2000
	AMENDED IN SENATE   MAY 10, 2000
	AMENDED IN SENATE   MARCH 6, 2000
	AMENDED IN SENATE   FEBRUARY 7, 2000

INTRODUCED BY   Senator Karnette

                        JANUARY 4, 2000

   An act to amend Sections 4852, 5060, 5101, and 5103 of the Vehicle
Code, relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1329, Karnette.  License plates.
   (1) Existing law specifies the dimension for license plates issued
for motor vehicles, other than motorcycles.
   This bill would additionally specify the size of the number and
letter characters and the minimum spacing between characters.
   The bill would specify the dimension of a motorcycle license
plate, character size, and the minimum spacing between characters.
   (2) Existing law requires the Department of Motor Vehicles to
issue special interest license plates containing a distinctive design
or decal of a participating organization, to any person, to be
displayed in lieu of regular license plates.  Existing law requires
each organization that applies to the department for participation in
the program to collect and hold applications for the plates until it
has received at least 5,000 applications, and to submit the
applications along with the necessary fees, to the department within
one calendar year following the enactment of the specific enabling
legislation.  Existing law requires an organization to return to all
applicants any fees or deposits that have been collected if 5,000
applications have not been received within one calendar year.  As an
alternative to returning the applicant's application and fees or
deposits following the one-calendar-year period, an organization may
contact the department to indicate its intent to undertake collection
of additional applications and fees or deposits for an additional
period, not to exceed 12 months, in order to obtain the minimum 5,000
applications.
   Existing law prohibits an eligible, participating organization
from expending more than 25% of the funds generated by revenues from
the sale of these plates on certain marketing and promotional
activities.
   This bill would substantially recast these provisions.  The bill
would authorize an organization to apply to the department to
establish a special interest license plate program and the department
would be required to authorize that participation if the issuance of
those plates is required by statute and the organization is tax
exempt, submits a financial plan describing the purpose for which
certain revenues generated from the sale of the plates will be used,
and submits an essential design of the proposed special interest
license plate that, among other things, provides for the placement of
the number and letter characters in a manner that allows for law
enforcement to readily identify those characters.
   The bill would also set forth certain design criteria for the
special interest license plates for a passenger vehicle, commercial
vehicle, or trailer, including allowing the plates to contain a
descriptive message, as an alternative to the design or decal.  The
bill would set separate design criteria for special interest license
plates for motorcycles and would make conforming changes to this
authorization.
   The bill would increase the number of applicants needed for an
organization to participate in the program from not less than 5,000
to not less than 7,500 applicants.  The bill would require the
department, if the number of currently outstanding and valid special
interest license plates in a particular program is less than 7,500,
to notify the sponsoring organization of that fact and to inform the
organization that if that number is less than 7,500 one year from the
date of that notification, the department will no longer issue or
replace those special interest license plates.  The bill would allow
those particular special interest license plates that were issued
prior to the discontinuation to continue to be used and attached to
the vehicle for which they were issued and to be renewed, retained,
or transferred pursuant to the Vehicle Code.
   The bill would require the department to deposit remaining
revenues generated from the issuance, renewal, extension,
replacement, or transfer of special interest license plates in a fund
required to be established by the Controller.
   The bill would limit participating organizations from annually
expending 25% of the funds that the organization receives from the
additional fees on administrative costs as well as marketing and
promotional costs.  Because under existing law a violation of this
restriction is a crime, this bill would create a state-mandated local
program by expanding the scope of that crime.
   The bill would also require every organization authorized to offer
special interest license plates to prepare and submit an annual
accounting report to the department by June 30.  The bill would, if
the organization violates the 25% expenditure restriction, require
the department to cease depositing fees in the fund established by
the Controller, as described above, and, instead would require those
fees to be deposited in a second fund created by the Controller which
would be subject to appropriation by the Legislature.  The bill
would require the department to immediately notify the organization
of this course of action.  The bill would prohibit the department
from issuing or replacing the special interest license plates
associated with that organization, if, one year after the date the
organization receives the notice, the organization is still unable to
satisfactorily demonstrate to the department that it is in
compliance or will comply with the 25% expenditure restriction.  The
bill would allow those particular special interest license plates
that were issued prior to the discontinuation to continue to be used
and attached to the vehicle for which they were issued and to be
renewed, retained, or transferred pursuant to the Vehicle Code.  The
bill would require the department to transmit an annual consolidated
accounting report to the Legislature.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 4852 of the Vehicle Code is amended to read:
   4852.  (a) License plates issued for motor vehicles, other than
motorcycles, shall be rectangular in shape, 12 inches in length and
six inches in width.  The number and letter characters shall have a
minimum height of two and three-quarter inches, a minimum width of
one and one-quarter inches, and a minimum spacing between characters
of five-sixteenths of an inch.
   (b) Motorcycle license plates shall measure seven inches in length
and four inches in width, characters shall have a minimum height of
one and one-half inches and a minimum width of nine-sixteenths
inches, and have a minimum spacing between characters of
three-sixteenths of an inch.
  SEC. 2.  Section 5060 of the Vehicle Code is amended to read:
   5060.  (a) An organization may apply to the department for
participation in a special interest license plate program and the
department shall issue special license plates for that program if the
issuance of those plates is required by this article, the sponsoring
organization complies with the requirements of this section, and the
organization meets all of the following criteria:
   (1) Qualifies for tax-exempt status under Section 501(c)(3) of the
Internal Revenue Code and subdivision (d) of Section 23701 of the
Revenue and Taxation Code.
   (2) Submits a financial plan describing the purposes for which the
revenues described in paragraph (2) of subdivision (e) will be used.

   (3) Submits a design of the organization's proposed special
interest license plate that, among other things, provides for the
placement of the number and letter characters in a manner that allows
for law enforcement to readily identify those characters.
   (b) Any person described in Section 5101 may apply for special
interest license plates, in lieu of the regular license plates.
   (c) The design criteria for a special interest license plate are
as follows:
   (1) The license plate for a passenger vehicle, commercial vehicle,
or trailer shall provide a space not larger than two inches by three
inches to the left of the numerical series and a space not larger
than five-eighths of an inch in height below the numerical series for
a distinctive design, decal, or descriptive message as authorized by
this article.  The plates shall be issued in sequential numerical
order or, pursuant to Section 5103, in a combination of numbers or
letters.
   (2) Special interest license plates authorized under this article
may be issued for use on a motorcycle.  That license plate shall
contain a five digit configuration issued in sequential numerical
order or, pursuant to Section 5103, in a combination of numbers or
letters.  There shall be a space to the left of the numerical series
for a distinctive design or decal and the characters shall contrast
sharply with the uniform background color.  No motorcycle plate
containing a full plate graphic design is authorized.  Those
particular special interest license plates that were issued prior to
the discontinuation provided by this paragraph may continue to be
used and attached to the vehicle for which they were issued and may
be renewed, retained, or transferred pursuant to this code.
   (d) (1) No organization may be included in the program until not
less than 7,500 applications for the particular special interest
license plates are received.  Each organization shall collect and
hold applications for the plates.  Once the organization has received
at least 7,500 applications, it shall submit the applications, along
with the necessary fees, to the department.  The department shall
not issue any special interest license plate until an organization
has received and submitted to the department not less than 7,500
applications for that particular special interest license plate
within the time period prescribed in this section.  Advanced payment
to the department by an organization representing the department's
estimated or actual administrative costs associated with the issuance
of a particular special interest license plate shall not constitute
compliance with this requirement.  The organization shall have 12
months, following the effective date of the enactment of the specific
legislation enabling the organization to participate in this
program, to receive the required number of applications.  If, after
that 12 months, 7,500 applications have not been received, the
organization shall immediately do either of the following:
   (A) Refund to all applicants any fees or deposits that have been
collected.
   (B) Contact the department to indicate the organization's intent
to undertake collection of additional applications and fees or
deposits for an additional period, not to exceed 12 months, in order
to obtain the minimum 7,500 applications.  If an organization elects
to exercise the option under this paragraph, it shall contact each
applicant who has submitted an application with the appropriate fees
or deposits to determine if the applicant wishes a refund of fees or
deposits or requests the continuance of the holding of the
application and fees or deposits until that time that the
organization has received 7,500 applications.  The organization shall
refund the fees or deposits to any applicant so requesting.  In no
event shall an organization collect and hold applications for a
period exceeding 24 months following the date of authorization as
described in paragraph (2) of subdivision (a).
   (C) Sequential plate fees shall be paid for the original issuance,
renewal, retention, replacement, or transfer of the special interest
license plate as determined by the organization and authorized by
department's regulations.  Those plates containing a personalized
message are subject to the fees required pursuant to Sections 5106
and 5108 in addition to any fees required by the special interest
license plate program.
   (2) (A) If the number of currently outstanding and valid special
interest license plates in any particular program provided for in
this article is less than 7,500, the department shall notify the
sponsoring organization of that fact and shall inform the
organization that if that number is less than 7,500 one year from the
date of that notification, the department will no longer issue or
replace those special interest license plates.
   (B) Those particular special interest license plates that were
issued prior to the discontinuation provided by subparagraph (A) may
continue to be used and attached to the vehicle for which they were
issued and may be renewed, retained, or transferred pursuant to this
code.
   (e) (1) The department shall deduct its costs to develop and
administer the special interest license plate program from the
revenues collected for the plates.
   (2) The department shall deposit the remaining revenues from the
original issuance, renewal, retention, replacement, or transfer of
the special interest license plate in a fund which shall be
established by the Controller.
   (f) When payment of renewal fees is not required as specified in
Section 4000, or when a person determines to retain the special
interest license plate upon a sale, trade, or other release of the
vehicle upon which the plate has been displayed, the person shall
notify the department and the person may retain and use the plate as
authorized by department regulations.
   (g) An organization that is eligible to participate in a special
interest license plate program pursuant to this article and receives
funds from the additional fees collected from the sale of special
license plates shall not expend annually more than 25 percent of
those funds on administrative costs, marketing, or other promotional
activities associated with encouraging application for, or renewal
of, the special license plates.
   (h) (1) Every organization authorized under this article to offer
special interest license plates shall prepare and submit an annual
accounting report to the department by June 30.  The report shall
include an accounting of all revenues and expenditures associated
with the special interest license plate program.
   (2) If an organization submits a report pursuant to paragraph (1)
indicating that the organization violated the expenditure restriction
set forth in subdivision (g), the department shall immediately cease
depositing fees in the fund created by the Controller for that
organization under paragraph (2) of subdivision (e) and, instead,
shall deposit those fees that would have otherwise been deposited in
that fund in a separate fund created by the Controller, which fund is
subject to appropriation by the Legislature.  The department shall
immediately notify the organization of this course of action.  The
depositing of funds in the account established pursuant to this
paragraph shall continue until the organization demonstrates to the
satisfaction of the department that the organization is in compliance
or will comply with the requirements of subdivision (g).  If one
year from the date that the organization receives the notice
described in this paragraph, the organization is still unable to
satisfactorily demonstrate to the department that it is in compliance
or will comply with the requirements of subdivision (g), the
department shall no longer issue or replace those special interest
license plates associated with that organization.  Those particular
special interest license plates that were issued prior to the
discontinuation provided by this paragraph may continue to be used
and attached to the vehicle for which they were issued and may be
renewed, retained, or transferred pursuant to this code.
   (3) Upon receiving the reports required under paragraph (1), the
department shall prepare and transmit an annual consolidated report
to the Legislature containing the revenue and expenditure data.
  SEC. 3.  Section 5101 of the Vehicle Code is amended to read:
   5101.  Any person who is the registered owner or lessee of a
passenger vehicle, commercial vehicle, motorcycle, or trailer
registered with the department, or who makes application for an
original registration or renewal registration of any vehicle, may,
upon payment of the fee prescribed in Section 5106, apply to the
department for environmental license plates, in the manner prescribed
in Section 5105, which plates shall be affixed to the passenger
vehicle, commercial vehicle, motorcycle, or trailer for which
registration is sought in lieu of the regular license plates.
  SEC. 4.  Section 5103 of the Vehicle Code is amended to read:
   5103.  "Environmental license plates," as used in this article,
means license plates that have displayed upon them the registration
number assigned to the passenger vehicle, commercial vehicle,
motorcycle, or trailer for which a registration number was issued in
a combination of letters or numbers, or both, requested by the owner
or lessee of the vehicle.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
